New Jersey Senate Bill SCR53

New Jersey 2022-2023 Regular Session

• Introduced: 1/31/22
• Refer: 1/31/22

Caption

Urges Congress and President to limit duration and amount of late enrollment penalties in Medicare Parts B and D.

Impact

The bill seeks to address the financial impact of late enrollment penalties, which can be substantial and continue indefinitely after enrollment. For Medicare Part B, the penalty can be a 10% surcharge for each full year of delay, while Medicare Part D imposes a 1% surcharge for each month of non-enrollment. These penalties were designed to combat adverse selection but may inadvertently harm beneficiaries who are unable to navigate the system or who face personal or financial barriers. If adopted, SCR53 could facilitate a shift in federal policy that may alleviate pressure on Medicare enrollees.

Summary

SCR53 is a Concurrent Resolution introduced in the New Jersey Legislature that urges Congress and the President of the United States to limit the duration and amount of late enrollment penalties for Medicare Parts B and D. The resolution emphasizes the financial burdens that these penalties impose on enrollees, particularly affecting older individuals and those with disabilities who face complex decisions regarding their health coverage. The sponsors highlight that while Medicare enrollment is voluntary, many eligible enrollees encounter obstacles in accessing information and making timely enrollment decisions, which can result in hefty penalties.

Contention

Supporters of SCR53 might argue that curtailing these penalties is a necessary step to provide fairer access to healthcare for seniors and vulnerable populations. Conversely, opponents may raise concerns about the potential for adverse selection in the Medicare system. They might argue that retaining some level of penalties is crucial for maintaining a broad, healthy risk pool, which helps to control premiums for all enrollees. Thus, there is a tension between ensuring equitable access to care and maintaining the financial integrity of the Medicare program.